Category C insurersCategory C insurers

Category C insurers

41. Any repatriation of assets in Australia, whether direct or indirect, by a Category C insurer that will result in a reduction in its net assets in Australia must be subject to APRA’s prior consent consistent with the requirements of paragraphs 36 to 38.[19]

42. Paragraph 41 does not apply to any repatriation of assets in Australia out of the current year profits of a Category C insurer where the assets being repatriated to the head office of the Category C insurer or any other branch or related entity[20] of the Category C insurer do not exceed the Category C insurer’s after-tax earnings in the year to which they relate (i.e. a repatriation of assets not wholly or partly funded from retained earnings).

Transition for internal model

43. For the purposes of paragraph 19, the criteria that must be met for an internal model to be approved are those specified:

(a) at Attachment B to Prudential Standard GPS 110 Capital Adequacy made on 25 September 2006 until commencement of GPS 113; and

(b) in GPS 113 with effect from commencement of GPS 113.

Determinations made under previous GPS 110

44. An approval, determination, direction or requirement made by APRA under a provision specified in Column 1 of the following table that is in operation immediately prior to the commencement of this Prudential Standard is taken, on and from the effective date, to have been made under the provision of this Prudential Standard specified in the same row of Column 2 of the table.